Lunchtime Links: Reasons to believe City workers are still relatively sanguine about job security
In times of turmoil, it's always reassuring to know that there's no shortage of commentators willing to indulge in a bit of hyperbole.
Bloomberg has helpfully pointed out that after UBS's redundancy announcement yesterday, European banks have now cut 40,000 jobs in the last month. Maybe so, but the vast majority of this figure comes from HSBC's decision to downsize its operation by 30,000 people globally.
UBS's cuts amount to just 5% of its total headcount and in London, which many suspected would be at the epicentre of redundancies, there are only likely to be 300 jobs lost.
Clearly, things are bad, though, and many are anticipating either more job cuts or subdued recruitment activity for years to come. Perhaps banks will never employ the same number of people again, due to regulatory pressures and onerous capital requirements, and the industry is going through a "fundamental restructuring", says Bloomberg. The term 'bloodbath' is being bandied around with wild abandon.
If it's panic in the press, the mood in the City seems a little more rational. In an admittedly small and random sample of people interviewed by City AM, people seemed, well, relatively calm.
One person said people working in the City weren't worried, the cuts were very "strategic" and they were still keeping on people who "add value". Another interviewee said it was "more secure than it was a couple of years ago". See, it's all fine.
Bank of America responds to blogger's claim that its stock is over-valued (Financial Times)
Bank of America has 'no need' to raise capital, says Dick Bove (Bloomberg)
Far-fetched rumour that JP Morgan will take over Bank of America (24/7 Wall Street)
Rothschild has signed a 'plunge protection' agreement with SocGen (Zerohedge)
There's no need to panic about Goldman just yet (Financial Times)
JP Morgan has hired a 'head of product management' for its equity research team (Financial News)
One Russian bank has increased its headcount by 40%, and staff costs by nearly 140% (Financial News)
Thankfully, S&P's new chief is practiced at handling crises (Dealbook)
Hays released the pay details of thousands of RBS contractors to 800 of the banks' employees (Financial Times)
BarCap is recruiting for 20 equities sales, trading and research staff in India (Reuters)
Credit Suisse has hired 11 people for its Indian investment banking business (Reuters)
Boutique bank takes on MD for its debt advisory business and is planning more hires
BoA has hired a top real estate banker (Dealbook)
German Mizuho investment banker, the first to be accused of insider trading, encouraged his two lovers to help (Telegraph)
